Main content:
In recent years, LFP batteries have emerged in the global power battery market, with its unique cost-effective and safe performance, gradually changing the global enterprise dependence on ternary lithium batteries, and becoming the 'meat and potatoes' in the eyes of many international mainstream automobile enterprises and battery manufacturers.
Behind this transformation is the comprehensive embodiment of technological progress, cost advantage and market strategy.
Technological innovation and cost advantage
For a long time, lithium iron phosphate battery has been marginalized because of its energy density and low temperature performance is not as good as NCM battery, which is popular for battery high energy density and light weight.
However, in recent years, with the optimization of lithium iron phosphate batteries by CATL, BYD and other enterprises, the energy density of lithium iron phosphate batteries has been on a par with NCM batteries, coupled with its advantages of low cost, high reliability and low risk of fire, a number of enterprises have gradually changed the ‘bias’ against lithium iron phosphate batteries, and invested in the camp.
Many international mainstream car companies such as Tesla, Volkswagen, General Motors, Ford, Northvolt, etc. have to increase the installed capacity of lithium iron phosphate battery configuration, and even the traditional international ternary battery giants such as Samsung SDI, LGES, SK On also announced one after another to set up a lithium iron phosphate battery production line plans.
The rise of the international market
In the global market, the rise of lithium iron phosphate batteries is particularly notable.
South Korean battery giant LGES announced that it will supply LFP soft pack batteries to Renault's electric vehicle division Ampere, with a total capacity of 39GWh for 590,000 electric vehicles, which will be the first large-scale supply of lithium iron phosphate batteries by LG New Energy.
Ampere also announced on July 1 that it will incorporate lithium iron phosphate technology into its mass-production program, and will collaborate with suppliers LGES and CATL factories to establish a complete value chain in Europe. From 2026, several Renault models will use LFP batteries.
In addition, ACC, a joint venture between Mercedes-Benz and Stellantis, has stopped building battery factories in Germany and Italy and is considering switching to lower-cost lithium iron phosphate batteries to meet market demand.
Tesla, Volkswagen, General Motors, Ford and other car companies have also announced an increase in lithium iron phosphate battery installed supporting, further boosting market demand. It can be seen, with the major leading enterprises continue to layout, lithium iron phosphate battery is showing a comprehensive rise trend.
China's leading enterprises layout of lithium iron phosphate batteries
Chinese lithium iron phosphate industry seize the opportunity to better meet the global market demand for lithium iron phosphate batteries, and actively layout of the global market, through exports, cooperation and local factories, in order to realize the expansion of production capacity on a global scale.
At the beginning of 2024, competition among best power battery manufacturers intensified, especially for the lithium iron phosphate battery market. Lithium iron phosphate leader Lopal announced that its subsidiary Changzhou Liyuanen signed a sales contract with LGES.
According to this long-term contract from 2024 to 2028, Changzhou Liyuanen will supply 160,000 tons of IFP cathode materials to LGES. Based on the current market price, the total value of the contract is expected to exceed RMB 7 billion, which is also the first international large order for Chinese lithium iron phosphate enterprises.
In Southeast Asia, Guoxuan Hi-Tech cooperates with VinGroup to build a lithium iron phosphate battery factory in Vietnam, with a total investment of nearly VND6.33 trillion (about RMB2 billion). Large-scale production is expected to start in the third quarter of 2024, which will be the first lithium iron phosphate battery factory in Vietnam.
In the first half of this year, China's power battery installed capacity increased by 33.7% year-on-year to 203.3GWh, of which the market share of lithium iron phosphate batteries is significantly higher than that of lithium ternary batteries, accounting for 69.3% of the total installed capacity.
In addition to power battery, lithium iron phosphate in the energy storage market performance is also bright. From January to June, China's energy storage battery exports soared more than 4 times; China's head of energy storage battery companies, such as CATL, BYD, EVE, etc., has been in the field of energy storage has won a number of GWh level of global orders.
According to statistics, in 2023, these companies have taken more than 11 orders of more than 10GWh of energy storage, totaling more than 200GWh, which fully proves the market potential of lithium iron phosphate battery in the field of energy storage.
Future Prospects
Despite the rapid expansion of lithium iron phosphate batteries in the global market, but in the face of the challenges of global electrification transition, lithium iron phosphate companies still need to continue to innovate and optimize to cope with potential market fluctuations and technological innovation.
With the gradual mass production of global localized production capacity, the global lithium iron phosphate market competition will be more intense. In short, the rise of lithium iron phosphate batteries is not only the result of technological progress, but also the inevitable choice of the global electric vehicle and energy storage market for cost-effective and safe performance needs.
With the in-depth layout of lithium iron phosphate enterprises in the global market, let us look forward to lithium iron phosphate batteries in the future to continue to write a brilliant chapter, leading the direction of the development of the global new energy industry.
Conclusion
The global rise of lithium iron phosphate battery not only reflects its advantages in technology and cost, but also reveals the profound changes in the global new energy industry. In the future, LiFePO4 batteries are expected to play a greater role in the global electric vehicle and energy storage market, leading a new round of green energy revolution.
Related articles: Top 10 lithium iron phosphate materials companies power battery charge lithium battery market